As a provider, you will see a variety of pay rate types being offered by buyers through published work. The pay rate in a work order determines how the buyer plans to compensate the assigned provider for labor upon completion.
Work order pay rate structures defined:
Fixed - One fixed amount as payment for all labor required to complete the written scope of work, regardless of time on site. Along with the fixed rate, the buyer will include an “Approximate hours to complete”, as a general estimate of how long it might take based on past experience. Neither the 'approximate hours' posted, or the actual time to complete the scope will impact the fixed payment amount. The assigned provider will be compensated the total ‘fixed’ rate for labor upon completion of the scope, even if it takes more or less than the time estimated.
Hourly - The assigned provider will be compensated per hour on-site, up to or at the “max hours” (maximum) which is a cap put in place by the buyer. Note, pay for the first 1 to 60 mins is rounded up to 1 full hour (for example, the provider completes work in 30 minutes, but still gets paid one full hour). After the first hour, the pay is calculated by the minute, (for example, provider completes work in 1.25 hours at $40/hr, the provider would earn $50 in labor pay). Hours logged past the 'max' hours (for example, max hours is set to 2 hours but the provider is on site for 3 hours), the pay will remain capped at 2hrs until payment for the additional time is approved by the buyer. The buyer will include an “Approximate hours to complete” along with the max hours, to give a general idea of how long they think it might take, but this is only an estimate.
Note - the hourly pay rate model can be set as open-ended with no max, meaning any/all hours logged on site are calculated toward the total payment amount.
Blended - The assigned provider will be compensated for labor based on a rate that is a combination of both ‘fixed’ and ‘hourly’ rates. It allows for setting a fixed rate for a set number of hours, and then an hourly rate for any additional hours logged beyond that. An example of a blended pay rate would be $200 fixed for the first 2 hours, then $30/hour after that, up to an additional 2 hours max, meaning the provider would be paid a minimum of $200 for 2 hrs or less, and a maximum of $260 for 4+ hours. The buyer will include an “Approximate hours to complete” to give a general idea of how long they think it might take, but this is only an estimate.
Multi-Site - One scope of work that needs to be repeated at multiple locations. The assigned provider will be compensated for labor with one rate per completed site. For example, if a work order is set at $15 per site for 19 sites, and the provider completes them all, the work order would be paid $285. This pay rate model also does not change based on hours logged. The buyer will include an “Estimated labor hours” to give a general idea of how long they think it might take, but this is only an estimate.
Per Device - The assigned provider will be compensated for labor per device serviced/installed/completed, based on criteria set by the buyer in the scope of work. For example, if a work order is set at $100 per device installed, and the provider installs three devices, the provider will receive $300, whether it takes 1 or 4 hours to complete. This pay rate model does not change based on hours logged. The buyer will include an “Approximate hours to complete” to give a general idea of how long they think it might take, but this is only an estimate.
Setting and changing a work order pay rate: The work order pay rate is initially set by the buyer when the work order is published and/or routed. A buyer can increase the assigned providers pay at anytime before approval. A buyer cannot decrease the pay rate by themselves, other than applying an existing penalty.
Similarly, a provider cannot automatically increase their own pay, but they can request and increase. Providers can decrease their own pay any time before approval by adding a discount.
Providers can request an increase in pay any time before approval, and there are a few different ways to do it. All pay increase requests have to either be approved or denied by the buyer.
To request an increase before assignment: submit a counter-offer as part of their request for the work order.
After assignment: submit a “pay change request” or add an additional charge request in a work order anytime before approval.
What kind of pay rate do you most often counter-offer for? Chime in below ⤵️
